Best Debt Consolidation Loans: Your Guide for 2024 (2024)

Personal Finance Loans Personal Loans

Written by Liz Knueven and Ryan Wangman, CEPF; edited by Richard Richtmyer; reviewed by Elias Shaya


  • Best for good to excellent credit
  • Best for fast funding
  • Best for high balances
  • Best for bad credit
  • Best for fair credit
  • Best for loan options
  • How we review debt consolidation loans
  • FAQs

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate personal loans to write unbiased product reviews.

Debt consolidation is when you take out one loan and use it to pay off other debts that you have, leaving you with one monthly payment and interest rate. This can help you manage your debt more efficiently, and in some cases, reduce the total amount of interest you'll pay if the new loan's APR is lower.

Generally, you'll need a personal loan for debt consolidation, which means replacing multiple loans with a single loan instead.

Our Picks for the Best Debt Consolidation Loans

How we rank debt consolidation loans »

Compare Debt Consolidation Loans

The best debt consolidation loans help you work toward paying off debt by bundling multiple debts into one account, and they're generally only a good idea if you can get a lower interest rate than your various debts carry. We looked at lenders that are best for fast cash, a variety of credit scores, and for high debt balances to come up with our list of top picks.

Best for good to excellent credit: Lightstream Personal Loan

Best for good to excellent credit

LightStream Personal Loan

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Insider’s Rating



0.50% discount on regular rates with AutoPay

Regular APR

6.99% to 25.49% (with AutoPay discount, rates vary by loan purpose)

Loan Amount Range

$5,000 to $100,000

Minimum Credit Score



  • Competitive APR
  • Approval decisions should come shortly after applying
  • Loans can be funded the same day
  • Wide range of borrowing amounts and terms
  • No fees


  • Only available to people with good credit
  • No pre-approval option

Insider’s Take

LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.

LightStream Personal Loan review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Loan amounts range from $5,000 to $100,000
  • Loan term lengths range from 2 to 12 years
  • Apply online and you'll receive a response shortly during business hours.
  • Receive your funds as soon as the same day
  • Loans are made by Truist Bank, member FDIC

Lightstream is a highly regarded lender for many loan types, and has been a top pick across Insider's coverage of the best personal loans and best auto loans. However, this lender only works with borrowers with good or better credit, with a minimum credit score requirement of 660.

LightStream offers consistently low personal loan interest rates, though its minimum interest rate for debt consolidation is higher than its typical personal loan's interest rates. However, this lender does not have any prepayment or origination fees. Same-day funding is available with LightStream.

Watch out for:Maximum loan amount limits. Only borrowers with excellent credit can borrow the $100,000 maximum, and anyone without excellent credit may not qualify for the full amount.

LightStream defines excellent credit as an account with five or more years of credit history, stable and sufficient income for debts, and a variety of credit history with little or no credit card debt. If you're looking for a debt consolidation loan, chances are you have a significant amount of debt, and may not fit these qualifications.

Additionally, LightStream doesn't have a way to pre-qualify online. You'll have to apply for the loan to find out exactly what your rates and terms could look like, which could make comparison shopping difficult.

LightStream Personal Loan Review

Best for fast funding: Upgrade Personal Loan

Best for fast funding

Upgrade Personal Loan

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On Upgrade's website

Insider’s Rating


Regular APR

8.49% to 35.99%

Loan Amount Range

$1,000 to $50,000

Minimum Credit Score


Insider’s Take

Upgrade is a solid lender if you can qualify for its lowest interest rate. But if your credit isn't in great shape, you may be able to find a better deal elsewhere.

Upgrade Personal Loan review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Loan amounts range from $1,000 to $50,000
  • Loan term lengths range between 2 to 7 years
  • You can get your money within one business day after your loan is reviewed and approved
  • Loans made by Upgrade's lending partners

Upgrade is great for fast cash because it allows you to get your money within one business day after your loan is reviewed and approved.

You're also able to get a loan for as little as $1,000, which is less than many of the other competitors on our list. It could be a good choice if you only have a small amount of debt you need to consolidate.

What to watch out for:Origination and late fees. Your origination fee will be late fee of up to $10 if you don't make a full payment within 15 days of your due date.

Upgrade Personal Loan Review

Best for high balances: SoFi Personal Loan

Best for high balances

SoFi Personal Loan

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On SoFi's website

Insider’s Rating



0.25% AutoPay interest rate discount and a 0.25% direct deposit interest rate discount

Regular APR

The following payment example depicts the APR, monthly payment and total payments made during the life of a personal loan with a single disbursem*nt. All loan rates below are shown with the autopay discount (0.25%) and direct deposit discount (0.25%). The monthly payment for a $30,000 loan with a 60-month term and a fixed annual percentage rate (APR) between 12.95% – 25.03% would be $681.82 – $881.07 in monthly payments, with total payments between $40,909.47 – $52,864.05. Your actual interest rate may be different than the loan interest rates in these examples and will be based on term of loan, your financial history, and other factors, including your cosigner’s (if any) financial history. Lowest rates reserved for the most creditworthy borrowers. See for details. Fixed rates from 8.99% APR to 25.81% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 05/19/23 and are subject to change without notice. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-6%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

8.99% - 29.49% fixed (with all discounts)

Loan Amount Range

$5,000 to $100,000

Minimum Credit Score



  • High maximum loan limit
  • Unemployment protection
  • No fees required
  • Competitive APR


  • High minimum credit score requirement
  • High minimum loan amount
  • No in-person support

Insider’s Take

SoFi is a strong personal loan lender for those with high credit scores — you'll get perks like unemployment protection and no fees required. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.

SoFi review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Loan amounts range from $5,000 to $100,000
  • Loan term lengths range from 2 to 7 years
  • Usually receive your money in a few business days after your application is approved
  • Unemployment protection if you lose your job during your loan repayment, allowing you to apply for a three-month forbearance, up to a total of 12 months
  • Loans are made by SoFi Lending Corp.

A SoFi personal loan is the best option for anyone with a high balance, as this lender makes debt consolidation loans of up to $100,000. Debt consolidation loans from this lender are comparable in rates to those offered by LightStream, but SoFi offers higher loan limits to all applicants, whereas LightStream only allows some borrowers to borrow up to $100,000. Similarly, SoFi doesn't have any application or prepayment fees as well as doesn't require an origination fee.

SoFi offers unique features like unemployment protection, which could put loans in forbearance for up to three months if you find yourself out of work.

Watch out for:Stringent requirements. SoFi personal loans have a minimum credit score of 680. According to NerdWallet, the average income among borrowers is over $100,000.

SoFi Personal Loan Review

Best for bad credit: Avant Personal Loan

Best for bad credit

Avant Personal Loan

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Insider’s Rating



Offers emergency, home improvement, and debt consolidation loans

Regular APR

9.95% to 35.99%

Loan Amount Range

$2,000 to $35,000

Minimum Credit Score



  • Funds generally deposited by the next business day
  • No prepayment penalty


  • Multiple types of fees
  • High maximum APR
  • Low maximum loan limit

Insider’s Take

Avant Personal Loan is a good personal loan provider, especially if you have a lower credit score and need to receive your loan money quickly. Just be prepared to pay a high APR if you do have a low score.

Avant review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Loan amounts range from $2,000 to $35,000
  • Loan term lengths range between 2 to 5 years
  • Administration fee of up to 4.75%, which will be deducted from your loan proceeds when the loan is funded, and late fee that varies by state
  • Loans made by WebBank, member FDIC

Getting a loan with bad credit, whether to consolidate debt or for something else, can be expensive, or hard to qualify for. An Avant personal loan is the best bet for borrowers with poor credit, requiring a minimum credit score of 600.

Compared with other personal loan lenders offering debt consolidation loans for bad credit borrowers, Avant's terms are the most generous. While there is an administration fee, it could be lower than competitors' fees with a cap up to 4.75% in administration fees with an undisclosed late fee and returned payment fee. Avant also has the advantage of offering fast personal loan funding.

Watch out for:High rates with a low credit score. While Avant is accessible to borrowers with poor credit scores, approval might go hand in hand with high interest rates on your loan.

Avant Personal Loan Review

Best for fair credit: Happy Money Personal Loan

Best for fair credit

Payoff Loan™

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Insider’s Rating



The minimum rate for loan amounts above $15,000 is 11.75% APR

Regular APR

11.72% - 17.99% fixed

Loan Amount Range

$5,000 to $40,000

Minimum Credit Score



  • Competitive interest rates
  • No prepayment or late fees
  • Low minimum credit score requirement


  • Origination fees
  • Slow access to funds
  • Limited loan purpose
  • Not available in all states

Insider’s Take

A Happy Money Payoff Loan personal loan is a great option for those with good credit scores who are eligible for the lender's lowest APR. However, borrowers can only use the funds to consolidate credit card debt.

Happy Money Payoff Loan™ review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Loan amounts range from $5,000 to $40,000
  • Loan term lengths range between 2 to 5 years
  • Origination fee anywhere between 0% and 5%
  • Won't be able to get a loan from Happy Money if you live in Maine, Massachusetts, Nebraska, or Nevada
  • Can only use for credit card debt consolidation
  • Loans made by one of Payoff's lending partners

In the fair credit range, it can be tough to qualify for a personal loan with reasonable interest rates — many lenders have a minimum of 660 or 680. However, a Happy Money Payoff Loan™ could be a good option for people with credit scores as low as 640. Interest rates are comparable to those offered by LightStream and SoFi, but this lender has less stringent requirements.

Compared with competitors Prosper and Best Egg, which both have the same 640 minimum credit score requirement, Payoff's interest rates are capped lower, and could have lower origination fees.

Watch out for: Origination fees. Payoff offers loans with a 0% to 5% origination fee. Competing lenders Prosper and Best Egg charge 1.00% to 7.99% and 0.99% and 5.99% origination fees, respectively. The better deal will depend on your credit score, income, and repayment term.

Happy Money Personal Loan Review

Best for loan options: Wells Fargo Personal Loan

Best for loan options

Wells Fargo Personal Loan

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Insider’s Rating



Relationship discount of 0.25%

Regular APR

8.49% to 24.49% (with relationship discount)

Loan Amount Range

$3,000 to $100,000

Minimum Credit Score



  • Large maximum loan amounts
  • Discounts for current customers
  • Established brick-and-mortar lender
  • No origination fee or prepayment penalty


  • Significant late fees
  • History of mismanaging customer information
  • No online applications for non-customers

Insider’s Take

Wells Fargo Personal Loan are a good choice if you need a significant amount of cash, as you can borrow up to $100,000 with the lender. However, if you're not a current customer, you can't apply for a personal loan without visiting a branch.

Wells Fargo personal loan review External link Arrow An arrow icon, indicating this redirects the user."

Product Details

  • Loan amounts range from $3,000 to $100,000
  • Term lengths range from 1 to 7 years
  • Rate discounts to customers who have a checking account with the bank and who make their loan payments automatically through that account
  • Non-customers must apply by visiting a branch and talking with a banker
  • Loans made by Wells Fargo, member FDIC

Flexibility makes Wells Fargo personal loan a top contender for best personal loans for debt consolidation. Wells Fargo separates debt consolidation loans from personal loans, but the interest rates are the same.

Benefits include competitive interest rates and an autopay discount of 0.25% if payments are made from a Wells Fargo account. For unsecured personal loans, the most common type for debt consolidation, there are no origination or prepayment fees.

Wells Fargo can send your loan funds to your Wells Fargo bank account, or to a credit account outside of Wells Fargo to pay down your debts directly.

Watch out for:Wells Fargo's history with data security and compliance. The bank has faced several federal penalties for improper customer referrals to lending and insurance products, and security issues tied to creating fake accounts several years ago.

Wells Fargo Personal Loan Review

Which debt consolidation loan lender is the most trustworthy?

We've compared each institution's Better Business Bureau score to give you another piece of information to choose your lender. Whether you're considering a $5,000 loan or a $10,000 loan, a trustworthy lender can improve your loan experience. The BBB measures businesses based on factors like their responsiveness to customer complaints, honesty in advertising, and transparency about business practices. Here is each company's score:

LenderBBB Grade
Wells Fargo Personal LoanF
LightStream Personal LoanA+
Sofi Personal LoanA+
Payoff Personal Loan™A+
Avant Personal LoanA
Upgrade Personal LoanA+

With the exception of Wells Fargo, our top picks are rated A+ by the BBB. Keep in mind that a high BBB score does not guarantee a positive relationship with a lender, and that you should continue to do research and talk to others who have used the company to get the most complete information possible.

Wells Fargo is currently rated an F by the BBB due to government actions against the business and a failure to respond to 14 complaints. Most recently, the Consumer Financial Protection Bureau in December 2022 ordered Wells Fargo to return $2 billion to customers and pay a $1.7 billion penalty for legal violations involving auto loans, mortgages, and deposit accounts. The bank illegally charged fees and interest penalties on auto and mortgage loans. Additionally, it misapplied payments to those loans for many customers.

If you're uncomfortable with this history, you may want to use one of the other personal loan lenders on our list.

How to choose a debt consolidation loan

The main benefits of consolidating debt are streamlining your debts into a single account with one monthly payment and reducing the total amount of interest you'll owe.

When shopping for a debt consolidation loan, look for an APR that is lower than the average you're paying on the debt you want to consolidate. If you can't qualify for a lower rate, a debt consolidation loan might not be a good choice for you.

Also consider the loan amounts, associated fees and penalties, as well as a lender's credit score and other eligibility requirements when choosing a debt consolidation loan.

Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.

How to qualify for a personal loan for debt consolidation

Qualifying for a debt consolidation loan is the same as it is for most other kinds of personal loans.

Generally, lenders require a credit score in the mid-600s, although some will accept borrowers with lower scores. Remember, though, that with a lower credit score you'll pay a higher interest rate.

In addition to checking your credit score, debt consolidation companies will also need proof of your employment and ability to repay in order to determine eligibility. They will also check your debt-to-income ratio to make sure you haven't borrowed more than you can feasibly pay back.

Most lenders will allow you to prequalify for a loan, which allows you to compare interest rates and terms without affecting your credit score.

How to apply for a debt consolidation loan

After you've gotten prequalified with several lenders, compare their offers and choose the one that best suits your needs. To completethefull loan application process you'll need a significant amount of documentation, including things like:

  • Pay stubs/proof of income
  • The last couple years of tax returns
  • Documentation of 401(k)s and other financial accounts
  • Photo ID
  • Rent/mortgage history
  • Proof of collateral, if you're pursuing a secured loan

Get these basics in order before applying for the loan, in order to speed up the process. You can apply for most loans by filling out a form online.

If you are approved, the lender will send you the final loan documents to sign off on. These include all the details such as the interest rate, the amount of time you have to pay it off, the amount you're borrowing, the monthly payments, and any fees. Make sure you fully understand all of it before signing for the loan.

Alternatives to debt consolidation loans

If you're looking for a debt consolidation loan because your credit cards carry high APRs, it's worth your time to consider some alternatives.

One often underutilized strategy is to simply ask your credit card company for a lower rate. There's no guarantee that they'll agree. However, they may well do so, especially if you've been diligent about payments. You can also ask about upgrading your credit card, which may come with a lower APR and other perks.

You may also be able to get a lower rate by transferring your balances to a different credit card. Cards designed for this purpose often come with an introductory 0% APR period that can last anywhere from 12-18 months. Tackling your debt head-on using strategies such as the avalanche and snowball methods is another alternative.

How we review debt consolidation loans

We consulted loan and financial planning experts to inform these picks and give their insights into finding the best loans for your needs. You can read their advice at the bottom of this post.

Generally, What Makes a Personal Loan Good or Not Good?

Andre Jean-Pierre:

"One of the most important factors to consider in a personal loan is the interest rate. Because personal loans are typically unsecured, they usually carry higher interest rates than secured lending options. However, if a person has a strong credit profile, a personal loan can carry a lower APR than other unsecured sources of financing such as credit cards."

Forrest McCall:

"One of the best ways to use a personal loan is to pay off other high-interest debts like credit card debts. Because you can often lock in lower rates than a revolving line of credit like a credit card it can be a smart decision for your finances and save you thousands in interest payments over time."

How Should a Borrower Decide if They Should Take Out a Personal Loan?

Fred Winchar:

"Whether or not to take a personal loan depends on if one can afford it. The purpose of the loan and the value that comes with it is of importance to note. In most cases, it is beneficial to use the loan to invest in a project that can bring extra income or savings."

Ryan Wangman:

"Borrowers should carefully consider alternatives to personal loans before taking one out. Personal loans can come with high interest rates, especially for borrowers with poor credit. If you can't fit those monthly payments into your budget, steer clear of the loan."


To find the best personal loans for debt consolidation, we combed through the fine print and terms of about a dozen personal loans to find the ones that were best suited to help with consolidating debt. We considered four main features:

  • APR range: For the most help with debt payoff, a personal loan for debt consolidation needs to have lower interest rates than the credit card or other debts you're consolidating. We looked for the loans that had the lowest rates possible for each credit range and purpose. The average credit card interest rate was 16.65% in the second quarter of 2022, so we focused on loans that had the potential to beat this.
  • Appropriate loan amounts:We looked for personal loans that had the most variety in loan amounts. According to loan comparison site Credible, the median amount of debt consolidated in May 2020 was $18,000. To benefit the most borrowers, we included personal loans with maximum limits over $10,000.
  • Minimum credit score requirements: Where available, we considered the minimum credit score requirements for each company. We considered loans for excellent, fair, and poor credit, grouping loans into categories based on these credit score requirements.
  • Fees:We considered fees like origination or administrative fees in our decisions, looking for loans with the fewest or lowest fees. None of the best loans listed have prepayment penalties.
  • Nationwide availability: We only considered loans with availability in most or all 50 US states.

See our ratings methodology for personal loans »


What kind of loan do I need to consolidate debt?

Personal loans are the most common type of loan used for debt consolidation. Other options for consolidating debt include ahome equity loan, a home equity line of credit (HELOC), and a balance transfer credit card.

Is debt consolidation a good idea?

When you take out a debt consolidation loan, the funds are used to pay down the debts you have with multiple lenders, leaving you with a single monthly payment to make. It does not erase your debt, and you might end up paying more over the long term even if you end up paying less each month on the consolidation loan.

Will a debt consolidation loan hurt my credit score?

Your credit will often be boosted in the long run if you consolidate your debt because it can reduce the amount you owe and lower monthly minimum payments, which all affect your credit score. With a debt consolidation loan, you can benefit from a lower interest rate.

Liz Knueven

Personal Finance Reporter

Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.

Ryan Wangman, CEPF

Loans Reporter

Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe.

Elias Shaya

Compliance Associate

Elias Shaya is a Compliance Associate on the Personal Finance Insider team based in New York City, whichensures content accuracy and editorial independence so readers are always getting up-to-date and objective financial advice.The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up-to-date and accurate.He joined Insider in February 2022 as a fellow on the compliance team.

Top Offers From Our Partners

Best Debt Consolidation Loans: Your Guide for 2024 (10)

SoFi Checking and Savings Earn up to 4.60% APY on savings balances and up to a $300 bonus with qualifying direct deposit. FDIC Insured.

There is no minimum direct deposit amount required to qualify for the 4.60% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at To earn the $300 bonus, the customer must complete a direct deposit with a minimum initial deposit of $250 in a new SoFi Checking and Savings account within 45 days of clicking to qualify (offer expires 12/31/24).

Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.

Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.

**Enrollment required.

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Best Debt Consolidation Loans: Your Guide for 2024? ›

A good credit counselor will spend time reviewing your specific financial situation and then offer customized advice to help you manage your money.

Who is the best person to talk to about debt consolidation? ›

A good credit counselor will spend time reviewing your specific financial situation and then offer customized advice to help you manage your money.

Does consolidation ruin your credit score? ›

Ways debt consolidation can hurt your credit score

For example, if you move your existing credit card balances to a balance transfer card, then end up using your old cards again, you may have more debt than when you started, which will likely hurt your credit score.

Which bank is best for debt consolidation? ›

PNC Bank is a major brick-and-mortar financial institution that offers debt consolidation loans online with no collateral required. PNC Bank personal loans have no application or origination fees. Borrowers can lock in a 0.25% rate discount for making automatic loan payments from a PNC checking account.

Is there a downside to consolidating loans? ›

Consolidation has potential downsides, too: Because consolidation can lengthen your repayment period, you'll likely pay more in interest over the long run.

What is the minimum credit score for debt consolidation loan? ›


The minimum credit score needed to secure a debt consolidation loan ranges from 580 to the mid-600s, depending on the lender. The best terms and rates go to borrowers with scores that are around 700 or higher.

Is it hard to get approved for debt consolidation? ›

Key takeaways. Although lenders differ, most require that borrowers have a good credit score, a low debt-to-income ratio and a steady income. Some lenders cater to borrowers with lower credit or allow for co-signers, which can increase your approval odds and or grant you a better interest rate.

Is Upstart a good loan company? ›

Upstart earned top marks for its low minimum advertised rate, low minimum borrowing requirements and willingness to loan money to borrowers with poor credit. Unfortunately, the lender does charge an origination fee, and its highest advertised loan rate of 35.99%* is above what many competitors charge.

Can I still use my credit card after debt consolidation? ›

If a credit card account remains open after you've paid it off through debt consolidation, you can still use it. However, running up another balance could make it difficult to pay off your debt consolidation account.

Is a debt consolidation program a good idea? ›

Debt consolidation can help your credit if you make on-time payments or if consolidating shrinks your credit card balances. Your credit may be hurt if you run up credit card balances again, close most or all of your remaining cards, or miss a payment on your debt consolidation loan.

How do I know if my debt consolidation company is legitimate? ›

Legitimate debt consolidation companies do not charge large upfront fees before providing any services. Be cautious of companies that make unrealistic promises or guarantees. Research and read reviews from reputable sources to gain insights into the experiences of other customers.

What is the catch with debt consolidation for the consumer? ›

You may pay a higher rate

Your debt consolidation loan could come with more interest than you currently pay on your debts. This can happen for several reasons, including your current credit score. If it's on the lower end, lenders see you as a higher risk for default.


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